BCIS Rebuild Cost Index Updates

BCIS Rebuild Cost Index Updates - Information Note

Keep up to date with annual changes in rebuild costs. These shifts affect the accuracy of your DRC valuation and should be reviewed regularly.

The Building Cost Information Service (BCIS) provides industry-standard data on rebuild costs, which are a key component in Depreciated Replacement Cost (DRC) valuations for academy properties.

Key Trends to Be Aware Of:

• General Building Costs are projected to rise by approximately 17% by 2030, according to BCIS forecasts.
• Tender Prices may increase by around 15%, reflecting higher contractor pricing in a competitive market.
• Labour Costs are expected to rise by 18%, influenced by National Insurance increases and changes to the National Living Wage.
• Materials such as steel, insulation, and timber are also forecast to rise in cost by 15% or more over the same period.

Why This Matters:

• While this doesn’t necessarily mean you need to commission an updated valuation immediately, these trends are important to be aware of for:
• Forward planning around estate development and capital investment
• Understanding the potential implications of cost changes on future valuations
• Interpreting current asset values within the context of rising rebuild costs.

This section will be updated periodically to reflect significant shifts in cost indicators that may be relevant to school estate management.